Courreges v. System Freight Service, Inc.

152 S.W.2d 841, 1941 Tex. App. LEXIS 589
CourtCourt of Appeals of Texas
DecidedApril 24, 1941
DocketNo. 4065.
StatusPublished
Cited by10 cases

This text of 152 S.W.2d 841 (Courreges v. System Freight Service, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Courreges v. System Freight Service, Inc., 152 S.W.2d 841, 1941 Tex. App. LEXIS 589 (Tex. Ct. App. 1941).

Opinion

SUTTON, Justice.

This is an appeal from a judgment of the Sixty-Fifth District Court of. El Paso County. The trial was to a jury, and on the verdict of the jury the court rendered judgment for the defendant. From that judgment the plaintiff has perfected this appeal.

The parties will be designated as they were in the trial court.

The combined pleadings of the plaintiff, N. L. Courreges, are lengthy and will be stated as briefly as may be for a clear understanding thereof.

Plaintiff alleged that on or about September 20, 1935, the defendant, System Freight Service, Inc. (then operating under another name), was engaged in the business of a common carrier of freight between Phoenix and Los Angeles, and desired to extend its operations east from Phoenix and Tucson to El Paso. The extension was known and operated thereafter as the El Paso Division. The plaintiff alleged he was experienced in. the truck freight business in the territory to be served by the extension and had acquaintances and connections in such territory. He claimed he perfected an arrangement and agreement with the defendant to combine his skill and labor with the capital and equipment of the defendant to operate such extension. It was necessary or advisable, he claimed, to procure a permit from the State of New Mexico to operate their trucks through that State. For his services and influence and efforts in setting up the extension he claimed the defendant agreed when the New Mexico permit was obtained a new corporation would be formed to operate the extension and he should have 25% of the stock and the defendant 75%, and until such was completed he should own 25% of the business of the extension and the defendant 75% thereof. The defendant denied the agreement claimed by the plaintiff.

A permit was obtained in New Mexico and the extension set in operation. The plaintiff resigned his posMon with another freight line and commenced work for the defendant at El Paso for a salary of $200 per month and expenses. It was alleged, *843 and the facts are, the new corporation was never organized.

Plaintiff claimed the extension was continued in operation from on or about October 1, 1935, to on or about September 20, 1936, under the arrangement as alleged. He claimed a 25% interest in the net profits from October 1, 1935, to September 20, 1936, and 25% interest in the operation of the El Paso Division. He alleged a dissolution of the partnership or joint venture arrangement on September 20,1936, and that he entered into a new agreement and arrangement. Under the new arrangement claimed by him the defendant had made and would prosecute an application with the Interstate Commerce Commission for a certificate of public convenience and necessity and when such certificate should be obtained he should have and own, in a New Mexico corporation organized as originally planned to operate the El Paso Division, 10% of the stock of such operating concern, and until such time as the same was obtained he would own 10% of the net profits and of the El Paso Division operation, and draw a monthly salary of $200 and expenses until further arrangements. He further alleged that if the new arrangement evidenced by an instrument in writing be construed not to provide for his claimed 10% interest, then there exists a mutual mistake of fact, and sought to have the same reformed. The plaintiff continued to work for the defendant until April 15, 1938, when he was discharged by the defendant. He sought to recover his claimed 10% interest in the profits and El Paso Division operation.

Plaintiff’s petition discloses that the defendant did make the application for a certificate of public convenience and necessity and that the same was denied on January 14, 1938, but was still pending on a motion for rehearing. The plaintiff claimed the purchase of the certificate, business and property of the Phoenix-El Paso Express, Inc., by the defendant May 1, 1938, was a breach of his contract with it and placed the defendant in a position where it could not perform its contract with him, by reason of all of which he asserted his right to an accounting and for the recovery of his interests and damages.

Plaintiff, in the alternative, sought, in addition to the salary paid and received in the sum of $200 per month, what he claimed to be the reasonable value of the services which he rendered the defendant, and by a first trial amendment claimed in all events his written contract dated September 28, 1936, was one of employment, and that he is entitled to receive the monthly salary of $200 so long as the defendant operates the El Paso Division.

By a second trial amendment plaintiff averred that if he be mistaken in prior allegations of. his petition in the alternative, in any event, he, on or about September 29, 1935, had an agreement with the defendant to jointly operate a freight line between Phoenix, Tucson and El Paso, and he was to have a 25% interest therein.

The defendant answered with a general demurrer, a general denial, specially denied under oath that any partnership or joint venture ever existed between plaintiff and defendant; the statute of frauds, two years statute of limitation; and a cross-action wherein it sought recovery against the plaintiff on two promissory notes executed by plaintiff and payable to the defendant.

Plaintiff has ten assignments of error, which we deem unnecessary to set out in detail, and four propositions briefed thereunder.

The first proposition in substance is that when the defendant purchased the operating rights of the Phoenix-El Paso Express, Inc., it placed itself in position where it could not obtain a certificate of convenience and necessity to operate a truck line between Phoenix, Tucson and El Paso, and thereby breached its contract with him, and the measure of his damages is 10% of the purchase price, which purchase price was $30,000.

The letter-contract dated September 28, 1936, is as follows:

“Dear Numa:
“Confirming our verbal agreement with you on or about September 25, 1935, we hereby agree to assign to you a ten percent (10%) interest in that part of our operation known as the El Paso Division, under the following conditions:
“1. It is understood that we have filed an application (Form BMC-8) with the Interstate Commerce Commission covering this particular phase of our operation, and the hearing has not yet been completed.
“2. It is further understood and agreed that if the above mentioned application is acted upon favorably and a certificate of Public Convenience and Necessity is granted, we will immediately take steps to form *844 a corporation in the State of New Mexico under the name of System Arizona Express Service of New Mexico.
“3. When the above incorporation is completed we will transfer the El Paso Division from the present corporation to the new corporation.
“4. After the above transfer is made we agree to issue to you ten percent (10%) of the stock of the said System Arizona Express Service of New Mexico.
“5.

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Bluebook (online)
152 S.W.2d 841, 1941 Tex. App. LEXIS 589, Counsel Stack Legal Research, https://law.counselstack.com/opinion/courreges-v-system-freight-service-inc-texapp-1941.